# Income rotation with a return-of-capital guard

> Income rotation with a return-of-capital guard: the rule, what it holds at the Nov 3, 2026 close, its signal and its paper record.

Data as of Nov 3, 2026. Rebuilt every trading night.

Data as of Nov 3, 2026. Rebuilt every trading night.

## Income rotation with a return-of-capital guard

Each month hold the four highest-yielding of ten income funds whose price has not fallen more than 5% in a year.

At the Nov 3, 2026 close Income rotation with a return-of-capital guard is risk on and holds QYLD 25%, XYLD 25%, HYG 25% and 1 more. Hypothetical back-test since 2016: +3.2% a year against SPY’s +15.1%, deepest fall −26.1%.

Hypothetical. No money is invested.

| Fund | Name | Weight |
| --- | --- | --- |
| QYLD | Global X NASDAQ 100 Covered Call ETF | 25.1% |
| XYLD | Global X S&P 500 Covered Call ETF | 25.1% |
| HYG | iShares iBoxx $ High Yield Corporate Bond ETF | 25.0% |
| SPYD | State Street SPDR Portfolio S&P 500 High Dividend ETF | 24.7% |

### The rule

- Each month hold the four highest-yielding of ten income funds whose price has not fallen more than 5% in a year.

- A rule reads the close of the last trading day of the month and trades at the next close.

- The universe is 10 funds; the benchmark is SPDR S&P 500 ETF Trust (SPY).

- It is checked at each month end.

Source: ETFIQ measures (2026). Income rotation with a return-of-capital guard. ETFIQ.

Computed by ETFIQ from Tiingo daily prices. Data sourced by Tiingo .

### Where to next

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Source: ETFIQ, independent ETF data. Recomputed nightly from public filings and prices.
Cite: ETFIQ Strategy Lab, Income rotation with a return-of-capital guard, data as of Nov 3, 2026. https://etfiq.com/models/strategies/income-rotation/
Licence: https://etfiq.com/license/ Data ETFIQ computes is free to use with attribution: ETFIQ (etfiq.com). Issuer data stays under its owner's terms.
HTML: https://etfiq.com/models/strategies/income-rotation/